Candlesticks

Before moving in to subject, let us discuss some basics of candlesticks, which will be more useful to beginners and novice traders. Candlesticks study originated in 11th century at Japan. It was brought to the notice of the Western world through the efforts of Steve Nison. Candlesticks with other technical tool can create a powerful synergy of techniques.

As I mentioned in my heading Candlesticks- The Price Doctor, to say this I have a reasons. Candlestick study helps you to understand psychological component of the market. By very few means any trader can gauge the health of the market, out of that candlesticks is one.

“An ounce of emotion can be worth a pound of facts – Steve Nison.”

Candlesticks are a colorful mechanism used to describe the emotional health of the market. Candlestick chart uses the same data points as the other charts i.e. the open, High, Low and Close. A traditional Japanese chart consists of a real body, representing the open and close, and upper and lower shadows, representing the high and low of the day.